Objectives : 1.Explain the purpose and use of a checking account. 2.Prepare checks and maintain a checkbook register. Warm Up: Grab a packet on the center table and answer the following question: Why do people put money in a checking or savings Agenda: 1.Warm Up 2.Vocab. 3.Intro to banking P.P. 4.Follow along notes 5.Balancing a check book activity Daily Information 4/24
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Objectives: 1.Explain the purpose and use of a checking account. 2.Prepare checks and maintain a checkbook register. Warm Up: Grab a packet on the center.
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Transcript
Objectives:
1.Explain the purpose and use of a checking account.
2.Prepare checks and maintain a checkbook register.
Warm Up:
Grab a packet on the center table and answer the following question:
Why do people put money in a checking or savings account?
Agenda:
1.Warm Up2.Vocab.3.Intro to banking P.P.4.Follow along notes5.Balancing a check book activity
Daily Information 4/24
Financial Planning
Three main influences when considering financial planning:
• Life Situation
• Personal Values
• Economic Factors
Why Save and Invest Money?
• Allow your money to grow
• Keep up with inflation
• Earn interest on interest
• Make your money work for you
Through:– Compounding interest– Investment growth
Slide 3
Time Value of Money
A dollar you receive in the future will be worth less than a dollar you receive today
Cash Management
The daily routine of handling money to take care of individual or family needs
• Effective cash management includes having money available for:– Living expenses– Emergencies– Savings– Investing
Slide 5
Cash Management Tools
A financial account used to assist with daily cash management
Certificate of Deposit 4 – 5.4% •Penalty for early withdrawal•Not easy to access funds
Savings Bond 4 – 5.4% •Tax advantages•Not easy to access funds
Why Have Checking Account?
• Checking Account – A demand deposit account on which checks are drawn
•Check - a written order to a bank to pay a person or business.
Checking Accounts
Why open a checking account?– Safe place to keep money (Insured by the FDIC)– Easy to pay bills by mail (writing a check)– Easy access to money to make cash purchases
• Withdrawal money• Write checks against the account• Debit cards• Internet banking
Checking Account Features
• May be interest earning
• Minimum balance requirements
• Charge transaction fees
• Limited number of checks written monthly
• Overdraft Protection (NSF)
**Reduces the need to carry large amount of cash
Opening a Checking Account
• What will I need?– Money! ($50 or $100)– Personal information– Identification – Provide an official signature
• What will I be given?– Checkbook– Checkbook register
Checkbook Register
A way to track your account transactions
Withdrawals and Deposits
• A withdrawal involves taking money from your account.o Writing checks o Using debit cards
• A deposit of money can be made to your account.o Endorsing checkso Direct deposit
**Banks will not hold postdated checks and process them at a future date.
Endorsing A Check
Signature on the back of the check approving it for deposit. Checks must be endorsed to be deposited
Three Types• Blank• Restrictive• Special
Safest way to endorse the check is to wait until going to the bank to deposit
Blank Endorsement
• Receiver of the check signs his/her name
• Anyone can cash or deposit the check after it has been signed
Endorse Here
X Sally Smith_________
DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE. RESERVED FOR FINANCIAL INSTITUTION USE________________________________